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  • Services
    • Tax Preparation
    • Home Loans
    • Personal Finance Coaching
  • About Us
    • Meet Chad
    • Meet Emilie
    • Chad's Story
  • Client Resources
    • Tax Resources
    • Home Loan Resources
    • Financial Coaching Resources
  • E-News
  • Client Reviews
  • Contact Us
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YOUR CART

E-News

Making Finances Simple. Changing Lives.

11/18/2020

Taxes & Working From Home

​Because of COVID, more and more people are working from home these days. Below is a breakdown of the tax implications of work-related expenses…..
The rules are different for employees versus self-employed folks/independent contractors.

Employees
In 2018, the IRS implemented tax reform that eliminated employee expense deductions. On the state side of things, each state has different rules. Some states did not conform to those IRS changes; so they still allow employees to deduct home offices and other work-related expenses. For those states, employee expenses require the taxpayer to itemize deductions and the expenses must exceed 2% of income to be deductible.

Self-Employed/Independent Contractors
For these folks, all work-related expenses are deductible, from dollar #1, and regardless if expenses are itemized or not (because they’re accounted for on a separate schedule with the tax return). This applies to both the IRS tax return and all state returns.
 
Be sure to visit the ”Forms” section of our website for worksheets that’ll help you organize these expenses come tax time.

But remember, with the recent administration change, tax law might also have some changes that could impact this specific situation. We’ll be sure to keep you updated as applicable.

Contact us if you have questions as it pertains to your specific situation…we’re happy to help!

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​​Copyright © 2022 Chad Peshke LLC, All rights reserved. NMLS #2244878. Material contained in this website is for informational purposes only and is not meant to be construed as direct financial advice for your specific situation. It's recommended that you consult with your own advisors for personalized financial guidance. Since we're not licensed attorneys, we cannot provide legal advice. As such, any info contained in this website should not be construed as direct legal advice. While Chad Peshke LCC is registered/approved with CA & ID, the trade name "CP" is not approved to be used in ID. This has no impact on our ability to legally do business in CA & ID as Chad Peshke LLC.